The Analysis 0n the Development of Islamic Banks on the Growth UMKM through Monetary Policy in Indonesia

The banking industry continues to experience improvement, but many UMKM are still untouched, even though the government has been promoting UMKM and many have provided stimuli in the form of low interest, but why is this still a dilemma for UMKM. This research is a study that discusses the relationship between the development of Islamic Banks / Syariah financing on UMKM through Bank Indonesia's policy, is the BI interest rate. And in this study it can be concluded that the direct increase in Islamics Banks has a negative relationship with Bank Indonesia policies, in this case, the policy of determining interest and directly Islamic banks is positively related to the development of UMKM. And indirectly the BI rate is not very related to UMKM. Overall, the development of UMKM is not related to the BI rate because UMKM only need financing for capital in order to increase their business. The study used secondary data from 2008 to August 2019 which was obtained from data from BPS, OJK and Bank Indonesia and processed using the Path Application.